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Retailers report Santa delivered mixed bag

By Lewis Rutherfurd[ lewis@hmbreview.com ]
Published/Last Modified on Wednesday, Jan 02, 2008 - 02:46:55 pm PST

Retail season in Half Moon Bay is a fickle business.

The key month, from the day after Thanksgiving to Christmas Eve, can be fraught with anything from foggy gloom to road closures on the isolated Coastside. But this year, national economic trends may have reached over the hill and stifled local sales.

In September, the National Retail Federation projected a drop in sales this year from a 10-year average of about 4.8 percent total growth to 4 percent. Those numbers were generous, according to data released Dec. 26 from MasterCard Advisors, a division of the credit card giant dedicated to market tracking and research.

Half Moon Bay's Main Street was clogged with shoppers on the week following Christmas. Area retailers attempted to capitalize on fair weather and shoppers with plenty of time on their hands.

Total national sales in the crucial retail month grew by only 3.6 percent this year. "Most observers adjusted their sights down," said Michael McNamara, vice president of research and analysis in a release from the organization. "But anyone who was looking for this holiday season to kick start a new wave of growth would find these numbers falling short."

In Half Moon Bay, some longtime observers found the season markedly worse than that. "Probably the quietest Christmas we've had for 20 years," said Patti Warshauer, owner of Main Street Gold Works and president of the Downtown Business Association. "We've been through a couple of Slide closures and recessions, and this is the first time we've really kind of felt the pinch."

The association members have not had their post-holiday meeting yet, she added, so official tallies of the prime retail season are not in. Warshauer said local merchants remained competitive on gift prices, matching retailers over the hill.

"It's not a price thing - people are cutting back," said Warshauer, who tracks sale prices in area malls. "People are just a little more conservative this year. But it could have an effect on this town all over."

She said she had a stack of donation requests from community organizations piling up on her desk as usual. But this year's charitable contribution may be slim after a tight Christmas season.

Meanwhile, in an indication of the wild ride that independent retailers can experience even in one small district, another local mainstay reported a banner year.

"We're just very happy with the season," said Doug Snow, owner of Paper Moon. Snow credits deep roots with local customers for a year that he said provided much stronger sales than any in recent memory.

Paper Moon, a card and gift shop, is sandwiched between popular newsstand Moon News and the busy Pasta Moon restaurant.

"Twenty-two years, the same location," said Snow. "We're pretty busy here; we've had a pretty steady clientele."

Warshauer hasn't lost heart. She notes that in her business hope is always just around the corner.

"Oddly enough, January is still a good month for us," said Warshauer. "So I'm optimistic."

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